For those wanting to invest in collectible gold coins, there is just one word to live by and that is research. There are graders who assess the coins and dealers who sell them. The coins have an aesthetic value to the collectors. This value exceeds their melt value because the metal content is little and gold content is high. The collectible value of the coin is determined by the type of coin it is, the year it was minted in, and the “grade” of the coin. One of the most important questions to ask is the melt value of the coin, which is the value you will receive if the coin is melted and sold. A lot of relevant information may be found in trade magazines, but you need to keep in mind that collectible gold coins sell for a premium so that the dealer may make a profit.
There are dealers who sell these coins after grading them using professional services. The professional services are offered by graders who examine the condition of the coin based on a specific criterion. A numerical grade ranging from 1 to 70 is assigned to each coin and they are kept in plastic covers for optimum protection. Even a minor difference in the grade could mean a gain or loss of thousands of dollars with regard to its value.
It is advisable to hold the collectible gold coins for at least a decade if you wish to make a profit on their sale. The dealers sell the coins at a markup price and this is how they make money on it. It is also possible that the price of gold increases and the value of a coin declines. In other words, the market for coins may not be the same as the market for gold.
Before taking an investment decision, be very clear about the commission or the fees the broker will be charging. Also, it is important to examine the coin before making a purchase decision. Learn about the grade and the dealer so that you do not regret your decision later on. Getting a second opinion will help you make a better choice with regard to the grade of the coin. Also, get to know the tax impact on the resale of collectible gold coins. In a nutshell, it is indeed an investment which needs an in-depth research and understanding of the coins and their dealers.